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Applications Modernization and the cost of doing nothing

old_telephone.jpgBy Francisco Fernandes, Solutions Architect, Hewlett Packard Company (Brazil)

 

Technology evolves at an ever increasing pace and even the latest equipment can soon become obsolete. This is true for everything in the IT field, including software, processes, methodologies, and frameworks.  Rapid change has caused many companies to hesitate before investing in modernization. This blog is focused on two key challenges facing organizations today:  the need to modernize just to keep up with technology (and the competition), and conversely, the cost of doing nothing

 

Let’s compare the two extremes relative to technology: organizations that are early adopters of new technology and organizations that simply do not bother to upgrade technologically.  The early adopters believe that by investing early, they will be better prepared to understand and capitalize on the benefits of new technology in the future, even if it does not deliver an immediate ROI.  Those that wait might save money in the short term, but may be saddled with a dated, under-performing IT infrastructure that is increasingly more expensive to maintain.  In short, the difference is the degree to which an organization decides to take a long-term perspective toward investment in technology.

 

This is equally true for applications as it is for hardware, maybe even more.  There is no way to talk about Applications Modernization without talking about legacy applications. Over time, legacy applications (many mission-critical) become complex, rigid, and poorly documented, thus making maintenance increasingly complicated and expensive.  Finding resources that understand and can maintain outdated applications becomes very difficult.  As the IT budget is increasingly spent on maintaining legacy applications, less money is available for innovation and modernization. 

 

In the long term, doing nothing is very expensive.  The difficulty (and cost) is compounded when attempting to integrate legacy applications with new applications, platforms, changes in standards, and so on.   Companies have found themselves literally stuck with old applications, unable to purchase and install modern solutions because they cannot be integrated with their current IT architecture.  (Suppliers share some of the responsibility as they reduce product lifecycles and support for discontinued versions.)  Waiting is clearly not the best strategy.

 

Applications Modernization must always be part of a company’s IT business plan.  To stay competitive, IT needs to stay current with changes and developments in the industry. Many companies budget for Applications Modernization only when a situation becomes critical or mandatory (for example when a vendor discontinues support). By this time it may be too late.  The business case for investing in Applications Modernization can be justified using detailed analysis of the company's IT architecture, identification of critical legacy applications, market and competitive demands, an analysis and review of supplier offerings, and the company’s future  IT plans. The business case should also include the impact and cost of not being able to modernize in a timely manner due to factors mentioned earlier.  This is a very dangerous situation; where a company is trapped for an extended period of time with an outdated IT infrastructure and the inability to integrate with other critical application solutions.

 

The issue is not just the cost directly associated with Applications Modernization.  When IT fails to meet business requirements, the company falls behind the competition, misses its revenue goals, loses customers and consequently loses money. This loss of revenue is the ultimate cost of doing nothing.

 

Related information: 

 

 

About the author

 

foto 3x4 francisco.jpgFrancisco Fernandes, Solution Architect, Hewlett Packard Company (Brazil)

Francisco is a Solutions Architect and an Applications Modernization Expert with more than 20 years of experience working on Applications in different industries including banking, financial services, telecom and healthcare. He joined HP in 2002 and is located in Rio de Janeiro, Brazil.

Comments
steve rubin(anon) 3 weeks ago

Hello Francisco,

 

Your blogs - "App Mod and Cost of Doing Nothing" and "IT Uncertainty Problem for the Unprepared" - both make clear that change is constant and must be prepared for (case why our clients must act). This on top of Industry Analysts calling out the same. Yet two fundamental starting points - App TEW (to help client 'stop. listen. think. collaborate' with little investment) and Applications Rationalization - are still far and few between in terms of client adoption. In your client experience, are the advisory messages you speak about resonating beyond generating client education/awareness - are they taking action with you/ES, if so for TEW/App Rat/What type of consulting service are you having success with?

 

Thanks

 

Steve

Fran_Fernandes 3 weeks ago

@Steve

 

We have been having some success with the TEWs. These workshops are great tools (as you mentioned) with low cost to help clients and HP to create a roadmap based on client´s business needs. Apps rat could be part of a bigger roadmap, which TEW could help to design. On top of all that, many clients have been suffering from lack of alignment between business and IT, which have been more evident with the fast pace some new trends are taking. Our speech haven been actually focused on rightstep as a starting point, from a consultative perspective. The TEWs, because of low cost and easy deployment, have been instrumental when the client is not sure they would like to invest on a rightstep engagement.

 

Do you have any thoughts on that?

 

Thanks!

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About the Author
Solutions Architect working at HP since 2002 with focus on Applications Modernization, located at Rio de Janeiro, Brazil
About the Author(s)
  • Business Development leader for HP’s Testing Practice in Americas and TaaS Global Capability Leader
  • Anthony works in the ES Apps Enterprise APJ . He is a self-motivated and well-disposed individual. He is a certified SAP FICO consultant. He has over twenty years industry experience in business transformation and Information Technology consulting (SAP). With excellent, interpersonal and communication skills, Anthony is able to influence and motivate at all levels. An empathic team player, He derives fulfilment in contributing towards others' development. Anthony possesses good analytical and problem-solving skills. He is a quick thinker, remains calm under pressure, handles multiple tasks, and accomplishes objectives with excellent time management. He is flexible and accustomed to meeting high standards and deadlines. Anthony possesses practical knowledge of business processes and concepts and has a keen eye for detail. He is aware of the importance of an effective system and quality management.
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  • Benjamin Romberg has over twenty five years experience in the IT industry, the last twelve of which have been as a testing professional. He has experience as a test analyst, performance tester, automation specialist, test lead, test manager, test consultant and test executive. He has worked on all types of testing engagements ranging from small web based applications through to core system upgrades. Benjamin holds a Bachelor’s Degree in Genetics, a Post Graduate Degree in Software Engineering and an Executive Masters in Business Administration. Benjamin now leads HP’s Testing and Quality Assurance Practice in Asia Pacific and Japan.
  • Over the past 5 years, I have participated in the different stages of delivering Microsoft Enterprise Applications to customers as large as 40.000 concurrent users across Europe with a focus on the public and call center sector. During this period, I worked in numerous technical (lead) and business consultant roles. Using this experience, I am currently a certified Microsoft Dynamics CRM 2011 expert which specializes in guiding enterprise customers and implementation teams through the process of implementing Microsoft Dynamics CRM 2011.
  • Craig has been with HP for 10 years working on the solutioning side as a Solution Architect. Primarily works with Microsoft technologies and has for the better part of 16 years. This past year Craig has worked mostly with Windows AZURE and the mobility side of Windows Phone 7/8 and Android.
  • Master Business Consultant and Distinguished SE with 35+ years of IT experience, specializing in SOA and Integration.
  • Daniel Amor (EMEA, AMOD, Cloud, Portals, Web Apps and SOA domain expert): Daniel has designed, won, led and delivered large-scale, complex applications-related projects by acting as a trusted advisor to clients. Daniel conducts regular training and client-facing sessions, and he has authored six books and numerous articles in European and US-based magazines and newspapers on IT change. He is a regular lecturer and he speaks on Portals, E-Business and Cloud.
  • Global HP Microsoft Business Applications Practice. Microsoft Dynamics CRM subject matter expert. Based in Manchester, United Kingdom. @DarrenCRM on Twitter
  • Solutions Architect working at HP since 2002 with focus on Applications Modernization, located at Rio de Janeiro, Brazil
  • Managing Consulting specialising in Business Transformation and Value Management for Defence, Healthcare, Public Sector, Criminal Justice and Telecommunications.
  • Guido Arndt is since May 1997 business consultant and project manager @ Hewlett Packard Enterprise Services. Main focus is strategic and organizational alignment of logistics, sales and production processes in the automotive and manufacturing industry as well as business performance projects in finance and telecommunication industry. Guido has experience as change agent and transformation manager in people-driven merger & aquisition projects focusing government, consulting firms, manufacturing plants and consumer brands.
  • Horia Slușanschi serves as an Agile Coach leading the HP Agile Mentoring Office and the HP Software Engineering Profession. He is passionate about helping teams and leaders to find joy in work in the pursuit of customer delight.
  • CISSP, Open CA Master Architect Technical Consultant with 28+ years of IT experience specializing in Application Security, Solution Architecture, Portals, Social Business, and Integration
  • Jim has been with HP for 33 years and currently leads a global Strategic Capabilities Management team, with a specific focus on Business Analysis and Configuration Management. Jim also manages a team within the US State, Local, and Education division of HP. He was a member of the IIBA committee that created a Business Analyst Competency Model and he participated in the development of IEEE standards. Jim graduated from Harvard University, the University of British Columbia, and Ottawa Theological Hall. He currently lives in Toronto, Canada.
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  • Laurence has over 35 years experience in the IT industry and has spent 27 years delivering knowledge management (and before that became fashionable, Artificial Intelligence and knowledge-based systems) transformation projects to clients in Government, Industry, Manufacturing and Telecomms industries. He has developed and implemented knowledge management (KM) strategies for HP's clients and for business areas in HP (for BPO and for our Consulting business) and believes that KM strategy is essential for an effective KM practice.
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  • Lori Lewis leads Global Digital and Integrated Marketing for the Applications and Business Services division in HP’s Enterprise Services. The organization is focused on providing clients with enterprise applications services and solutions to solve some of their most pressing business problems. For over 2 decades, she has championed innovative communication approaches to drive and grow market share and build motivated, empowered teams. She is a compelling, passionate ambassador of the art and science of marketing and the amazing results it can achieve when done with integrity and passion. Ms. Lewis’ credentials, track record, and enthusiasm are essential ingredients her team relies on as they work together to establish HP as the undisputed leader in information management and analytics services.
  • Microsoft Dynamics CRM solution architect, C# developer, MBA, husband, father, Auburn man. Follow me on Twitter @lucas_is.
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  • I have over 20 years of I.T. experience predominantely in applications development. In addition to my I.T. experience I spent 7 years as the Director of Store Services at Canada's third largest grocery retailer.
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  • I have worked for HP as a business consultant for seven years, providing process, strategy and business transformation advice in the Financial Services and UK Government sectors. As part of this I have used Lean and Continuous Improvement techniques to assess and improve business performance, ensure regulatory compliance and improve environmental sustainability.
  • Tom is the Global Product Marketing lead for HP's Cloud Applications Services. Tom has over 20 years of experience in information technology and a proven track record for implementing innovative client solutions in several industries including government, healthcare, and telecommunications. He thrives on developing services and solutions which result in business process improvement through greater systems efficiency.
  • Vijay Seetharaman is an Enterprise Architect within HP Enterprise Services - Industry Transformation Consulting practice, focusing on Cloud and Mobility


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